WHEREAS, Chapter 312 of the Texas Tax Code authorizes the City of McKinney, Texas, to participate in tax abatement agreements; and

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1 RESOLUTON NO ( R) A RESOLUTON OF THE CTY COUNCL OF THE CTY OF MCKNNEY, TEXAS, APPROVNG A COMMERCAL- NDUSTRAL TAX ABATEMENT AGREEMENT WTH MANNER PLASTCS, L. P.; AUTHORZNG THE CTY MANAGER TO EXECUTE THE TAX ABATEMENT AGREEMENT WHEREAS, Chapter 32 of the Texas Tax Code authorzes the Cty of McKnney, Texas, to partcpate n tax abatement agreements; and WHEREAS, the Cty Councl of the Cty of McKnney, Texas, fnds and determnes that enterng nto tax abatement agreements wll be to the beneft of the ctzens of the Cty of McKnney; and WHEREAS, the Cty Councl also desres to approve a Tax Abatement Agreement, a copy of whch s attached hereto as Exhbt A, entered nto by and between the Cty of McKnney, Texas, and Manner Plastcs, L. P., a Texas lmted partnershp. NOW, THEREFORE, BE T RESOLVED BY THE CTY COUNCL OF THE CTY OF MCKNNEY, TEXAS, AS FOLLOWS: Secton. Secton 2. That the foregong rectals are hereby found to be true and correct legslatve fndngs of the Cty of McKnney, Texas, and are fully ncorporated nto the body of ths resoluton. The Cty Councl of the Cty of McKnney, Texas does hereby adopt the commercal- ndustral tax abatement agreement, a copy of whch s attached hereto as Exhbt A, by and between the Cty of McKnney, Texas, and Manner Plastcs, L. P., a Texas lmted partnershp. Secton 3. The Cty Manager s hereby authorzed to execute a Tax Abatement Agreement between the Cty of McKnney, Texas and Manner Plastcs, L. P., a copy of whch attached hereto as Exhbt A. Secton 4. Ths resoluton shall become effectve from and after ts passage. RAN LOU Mayor LLER ATTEST: S4 SANDY HART, TRMC, MMC Cty Secretary BLANCA. GARCA Assstant Cty Secretary APPROVED AS TO FORM: ALAN D. LATHROM Assstant Cty Attorney

2 t RECEVED THE STATE OF TEXAS COUNTY OF COLLN FEB CTY SECRETARY TAX ABATEMENT AGREEMENT Ths Tax Abatement Agreement s entered nto by and between the Cty of McKnney, Texas, a home-rule muncpalty, duly actng heren by and through ts Cty Manager ( herenafter referred to as the " Cty") and Manner Plastcs, L. P., a Texas lmted partnershp ( herenafter referred to as " Manner Plastcs"), duly actng heren by and through ts Presdent. WTNESSETH: WHEREAS, Secton ( a) of the Texas Tax Code requres the Cty to pass a resoluton ndcatng the Cty's desre to become elgble to partcpate n tax abatement agreements; and WHEREAS, the Cty Councl of the Cty of McKnney, Texas, has prevously adopted a resoluton statng that the Cty elected to be elgble to partcpate n tax abatements; and WHEREAS, on the 2st day of August, 202, Cty Councl of the Cty, adopted Tax Abatement Gudelnes and Crtera, pursuant to Secton of the Texas Tax Code, whch are attached hereto as Exhbt A, and referred to as the Polcy Statement; and WHEREAS, the Polcy Statement attached hereto as Exhbt A, consttutes approprate gudelnes and crtera governng tax abatement agreements to be entered nto by the Cty as contemplated by the Property Redevelopment and Tax Abatement Act, Chapter 32 of the Texas Tax Code; and WHEREAS, on the 5th day of January, 203, the Cty Councl of the Cty passed Ordnance No establshng Renvestment Zone 27, for the Cty of McKnney, Texas, for commercal- ndustral tax abatement, herenafter referred to as the " Ordnance"), as authorzed by chapter 32 of the Texas Tax Code, as amended; and WHEREAS, Manner Plastcs presently owns the real property located wthn the Cty of McKnney, Texas; and WHEREAS, Manner Plastcs acknowledges and agrees that the tax abatements granted by ths Agreement are contngent upon ts complance wth ths Agreement n accordance wth the terms and condtons set forth heren; and

3 WHEREAS, the tax abatement wll mantan and enhance the commercalndustral economc and employment base of the Cty of McKnney thereby beneftng the Cty n accordance wth the Polcy Statement and the Property Redevelopment and Tax Abatement Act; and WHEREAS, the contemplated use and mprovement of the Real Property, and the locatng of the taxable stus of the Personalty, as herenafter defned, n the amounts and for the purposes set forth n ths Agreement and the other terms hereof are consstent wth encouragng development of sad Renvestment Zone No. 27, Cty of McKnney, Texas, n accordance wth the purposes for ts creaton and are n complance wth the Polcy Statement and the Ordnance, and smlar gudelnes and crtera adopted by the Cty and all applcable law; and WHEREAS, Manner Plastcs acknowledges and agrees that as a condton to recevng a tax abatement Manner Plastcs wll mantan an aggregate, ncreased mnmum taxable value ( whether actual or rendered; and ncludng any equvalent method such as through the executon of a Payment n Leu of Tax Agreement) of FVE MLLON AND NO/ 00 DOLLARS ($ 5, 000, ) on new real estate mprovements constructed and on newly-sted busness personal property n an expanded faclty; and WHEREAS, ths Tax Abatement Agreement was approved by the Cty at a regularly scheduled meetng consstent wth Secton ( a) of the Texas Tax Code. NOW, THEREFORE, n consderaton of the mutual benefts and promses contaned heren and for other good and valuable consderaton, the recept and suffcency of whch are hereby acknowledged, the partes agree as follows: SECTON. Fndngs ncorporated. All the above premses are hereby found to be true and correct and are hereby approved and ncorporated nto the body of ths Agreement as f coped n ther entrety. SECTON 2. Defntons. The followng words shall have the followng meanngs when used n ths Agreement.

4 a) Agreement. The word " Agreement" means ths Tax Abatement Agreement together wth all exhbts and schedules attached to ths Agreement from tme to tme, f any. b) Cty. The word " Cty" means the Cty of McKnney, Texas. For purposes of ths Agreement, Cty' s address s Cty of McKnney, 222 N. Tennessee Street, McKnney, Texas c) mprovements. The word " mprovements" means a buldng or buldngs and consstng of the newly- constructed expanson thereof on the Real Property, excludng exstng mprovements), havng a combned value wth the Personalty ( referenced- below) of at least FVE MLLON AND NO/ 00 DOLLARS ($ 5, 000, ) and as generally depcted n Exhbt C of ths Agreement. d) Loan Agreement. The words " Loan Agreement" means the loan agreement made and executed between Manner Plastcs, L. P., a Texas lmted Partnershp and the McKnney Economc Development Corporaton (" MEDC"), a Texas nonproft corporaton, whch was effectve as of July 23, 202. e) Manner Plastcs. The words " Manner Plastcs" means Manner Plastcs, L. P., a Texas lmted partnershp. For purposes of ths Agreement, Manner Plastcs' address s 500 nterchange, McKnney, Texas, f) Personalty. The word " Personalty" means the taxable, newly-sted busness personal property equpment located on the Real Property ( excludng exstng busness personal property sted on the Real Property as of the date hereof) havng a combned value wth the mprovements ( referenced- above) of at least FVE MLLON AND NO/ 00 DOLLARS ($ 5, 000,000.00). g) Real Property. The words " Real Property" mean the land located at 500 nterchange Street, McKnney, Texas, 7507, and as further descrbed and or depcted n Exhbt B of ths Agreement, on whch the mprovements wll be constructed and on whch the Personalty wll be stuated. SECTON 3. Property Subject to Tax Abatement. The real property subject to ths Agreement shall be a fee smple nterest owned by Manner Plastcs n certan real property located at 500 nterchange, McKnney, Texas, 7507, and as further descrbed and or depcted n Exhbt B of ths Agreement, whch s attached hereto and ncorporated heren for all purposes. The property s herenafter referred to as the Real Property and s located wthn sad Renvestment Zone No. 27, Cty of McKnney, Texas. The Real Property s the stus of

5 the mprovements. The Real Property shall be subject to a tax abatement to the extent the ncreased market value thereof, as reflected on the tax rolls of the Colln Central Apprasal Dstrct and attrbutable to the expanson, begnnng n Tax Year 204, exceeds the value thereof, as reflected on the tax rolls for Tax Year 202. Ths Tax Abatement Agreement s condtoned upon Manner Plastcs recevng a Certfcate of Occupancy for the mprovements on or before December 3, 203. Manner Plastcs agrees to locate on the Real Property new busness personal property whch was not on the tax rolls of the Cty pror to the Effectve Date; such new busness personal property shall be referred to herenafter as Personalty and shall be subject to the terms of the tax abatement descrbed n ths Agreement. Manner Plastcs agrees that to be elgble for the abatement descrbed heren, the Cty shall be n recept of a fnal, non- appealable determnaton of the Colln County Central Apprasal Dstrct of the ncreased taxable value of the mprovements and the Personalty ( excludng the value of the land and exstng mprovements and exstng busness personal property) whch equals at least FVE MLLON AND NO/ 00 DOLLARS ($ 5, 000,000.00). f the mprovements and Personalty ( excludng the value of the land and exstng mprovements and busness personal property) do not have a taxable value of FVE MLLON AND NO/ 00 DOLLARS ($ 5, 000,000.00) as determned by the Colln County Central Apprasal Dstrct, elgblty may alternatvely be met by the recept of wrtten confrmaton that for any affected Tax Year Manner Plastcs has rendered the value of the mprovements and Personalty, as such terms are defned heren, wth the Central Apprasal Dstrct of Colln County (" CCAD") n an amount not less than FVE MLLON AND NO/ 00 DOLLARS ($ 5, 000, ); or n the alternatve, and n conjuncton wth any affected Tax Year, Manner Plastcs has elected and has executed a Payment n Leu of Taxes Agreement wth Cty coverng any gap n Cty ad valorem taxes whch would have been payable had the mprovements and Personalty been taxable, n the aggregate, at not less than $ 5, 000, SECTON 4. Tax Abatement. Subject to the terms and condtons of ths Agreement, and subject to the rghts and holders of any outstandng bonds of the Cty, a porton of ad valorem taxes assessed by the Cty upon the Real Property attrbutable to the mprovements, and the porton of the ad valorem taxes assessed upon the owned Personalty added to the Real Property of Manner Plastcs and otherwse owed to the Cty shall be abated as follows: a) Term and Condtons of Elgblty. The maxmum number of years durng whch taxes shall be elgble to be abated on the Real Property and the Personalty shall be fve ( 5) years; however, notwthstandng anythng heren to the contrary, such fve ( 5) years of abatement shall be determned on a year-toyear bass, commencng n Tax Year 204.

6 b) Abatement Amount. The tax abatement rate for each such elgble year durng the tax abatement perod shall be the followng percentage of the porton of the ncremental value attrbutable to the mprovements constructed upon the Real Property and the Personalty sted upon the Real Property that s subject to abatement, as set forth n Secton 3, and such qualfcatons as noted elsewhere n ths Agreement: Tax Abatement Perod (after ts commencement) Abatement Percentage for Cty of McKnney Ad Valorem Taxes Fve (5) Years, begnnng wth Tax Ffty percent( 50%) Year 204; however, to be determned on a year-to-year bass Sad abatement of the taxes assessed on the mprovements constructed upon the Real Property and the Personalty sted upon the Real Property shall be based upon the ncreased value of the Real Property and Personalty attrbutable to the foregong. The abatement of the taxes assessed on the Personalty excludes other tangble personal property that was located on the Real Property at any tme before the perod covered by ths Agreement wth the Cty n accordance wth the terms of ths Agreement and all applcable federal, state, and local laws and regulatons. Further, sad Personalty subject to the ths tax abatement agreement shall be new busness personal property located upon the Real Property whch as of the effectve date of ths Agreement was not on the tax rolls of the Cty pror to the Effectve Date. SECTON 5. Use of Property. As consderaton for the agreements of the Cty contaned heren, Manner Plastcs agrees that t wll pursue the commencement and completon of the mprovements on the Real Property consstent wth the requrements set forth heren. Manner Plastcs agrees that constructon of the mprovements wll be n accordance wth all applcable federal, state, and local laws and regulatons. The Real Property shall be lmted n ts use to offce and commercal- ndustral real property consstent wth the Cty's development goals whch s to encourage development or redevelopment of the zone. SECTON 6. Default and Recapture Provson. a) Event of Default. n the event that ( ) Manner Plastcs fals to complete constructon of the mprovements to the Real Property n accordance wth ths Agreement; ( 2) Manner Plastcs allows ts real or personal property taxes owed the Cty to become delnquent and fals to tmely and properly follow the legal procedures for protest and/or contest of any such taxes; (3) Manner Plastcs fals to render the Personalty added to the Real Property after the Effectve Date of ths Agreement durng any year of ths Agreement or fals to mantan the taxable stus thereof n the Cty of McKnney, Colln County,

7 Texas; or ( 4) Manner Plastcs breaches any of the terms or condtons of ths Agreement or the Loan Agreement, then ths Agreement shall be n default. n the event that Manner Plastcs defaults n ts performance of ( ), ( 2), ( 3), or (4) above, then the Cty shall gve Manner Plastcs wrtten notce of such default and f Manner Plastcs has not cured such default wthn sxty ( 60) days of sad wrtten notce, then the tax abatement applcable to the year n whch such default occurred and durng any subsequent year n whch the default contnues, shall be suspended, and the full amount of taxes for such year(s) shall be due. f any ongong default s subsequently cured, n the sole judgment of the Cty, then the tax abatement shall be renstated for any remanng years of elgblty wthn the term descrbed n Secton 4 ( a) hereof; however no prevously abated taxes shall be owng for years n whch ths Agreement was not n default. b) Notce, Effect of Default. Notce shall be n wrtng and shall be delvered by personal delvery or certfed mal, return recept requested, or overnght delvery to the addresses below. Notce to Manner Plastcs: Raj Bhargava Presdent Manner Plastcs, L. P. 500 nterchange McKnney, Texas 7507 Notce to Cty: Jason Gray Cty Manager Cty of McKnney P. O. Box 57 McKnney, Texas SECTON 7. Rght of Access for nspecton. Manner Plastcs further agrees that the Cty, ts agents and employees, shall have reasonable rght to access to the Real Property, the mprovements, and Personalty added to the Real Property for the purpose of nspectng the mprovements and other tems subject to ths Agreement n order to ensure that the constructon of the mprovements are n accordance wth ths Agreement and all applcable federal, state, and local laws and regulatons. After completon of the mprovements, the Cty shall have the contnung rght of nspecton to ensure that such are thereafter mantaned and operated n accordance wth ths Agreement.

8 SECTON 8. Annual Certfcaton. On or before Aprl of each year, Manner Plastcs shall provde to Cty wrtten certfcaton that Manner Plastcs s n complance wth each applcable term of ths Agreement. Such certfcaton shall be n a form mutually agreed upon between Manner Plastcs and the Cty, and shall nclude, at a mnmum, nformaton supportng Manner Plastcs' conclusons that t met ( or expects to meet) each condton and requrement to abatement set forth n ths Agreement durng the years n whch Manner Plastcs s elgble for abatement as descrbed heren. Any falure of the Cty to request or demand such certfcaton shall not consttute a waver of such certfcaton or any future certfcaton. SECTON 9. Cancellaton or Modfcaton of Agreement. The Cty and Manner Plastcs agree that ths Agreement may only by cancelled, amended or modfed by mutual agreement of the partes hereto. SECTON 0. Authorzaton to Sgn ths Agreement. Ths Agreement was authorzed by Resoluton of the Cty Councl at ts councl meetng on the 5th day of January, 203, authorzng the Cty Manager to execute the Agreement on behalf of the Cty. Ths Agreement was entered nto by Manner Plastcs effectve on the 5th day of January, 203, pursuant to authorty granted to Raj Bhargava, Presdent of Manner Plastcs. SECTON. Mscellaneous Provsons. a) Amendments. Ths Agreement consttutes the entre understandng and agreement of the partes as to the matters set forth n ths Agreement. No alteraton of or amendment to ths Agreement shall be effectve unless gven n wrtng and sgned by the party or partes sought to be charged or bound by the alteraton or amendment. b) Applcable Law and Venue. Ths Agreement shall be governed by and construed n accordance wth the laws of the State of Texas, and all oblgatons of the partes created hereunder are performable n Colln County, Texas. Venue for any acton arsng under ths Agreement shall le n the state dstrct courts of Colln County, Texas. c) Assgnment. Ths Agreement may not be assgned wthout the express wrtten consent of the other party.

9 d) Bndng Oblgaton. Ths Agreement shall become a bndng oblgaton on the sgnatores upon executon by all sgnatores hereto. Cty warrants and represents that the ndvdual executng ths Agreement on behalf of Cty has full authorty to execute ths Agreement and bnd Cty to the same. Manner Plastcs warrants and represents that the ndvdual executng ths Agreement on ts behalf has full authorty to execute ths Agreement and bnd t to the same. e) Counterparts. Ths Agreement may be executed n one or more counterparts, each of whch shall be deemed an orgnal and all of whch shall consttute one and the same document. f) Effectve Date. The effectve date ( the " Effectve Date") of ths Agreement shall be January 5, 203. g) Flng. n order to receve the tax abatement pursuant to ths Agreement, Manner Plastcs understands t must fle, between January and Aprl 30 of each year, wth the apprasal dstrct an applcaton for property tax abatement exempton, n a form smlar to the form attached hereto as Exhbt D, durng the term of ths Agreement. h) Severablty. n the event any provson of ths Agreement shall be determned by any court of competent jursdcton to be nvald or unenforceable, the Agreement shall, to the extent reasonably possble, reman n force as to the balance of ts provsons as f such nvald provson were not a part hereof. ) Soveregn mmunty. No party hereto waves any statutory or common law rght to soveregn mmunty by vrtue of ts executon hereof. The Remander of ths Page ntentonally Left Blank]

10 ATTEST: CTY OF MCKNNEY, TEXAS, atn 74 0 r DY HA', T' MC, MM at4ly Cty Secretary BLANCA. GARCA Date: Assstant Cty Secretary $` JASON AY y4c CTY MANAGER S/' 3 ll A " apr. D S TO FORM: ARK S. HOUSER CTY ATTORNEY ATTEST: MANNER PLASTCS, L. P., a Texas lmted partnershp lc& YLa Name: JO.tl 2 ngo Name: Raj Bharga Ttle: C ; t+. M0p. Ttle: PRES[ DDNT Date: 2 S 3

11 Exhbt A CTY OF MCKNNEY COMPREHENSVE POLCY STATEMENT ON ECONOMC DEVELOPMENT AND COMMUNTY REDEVELOPMENT NCENTVES Adopted 8/2/ 2). General Purpose and Objectves The Cty of McKnney s commtted to the promoton of hgh qualty development n all parts of the Cty, and to an ongong mprovement n the qualty of lfe for ts ctzens. nsofar as these objectves are generally served by the enhancement and expanson of the local economy, the Cty of McKnney wll, on a case by case bass, gve consderaton to provdng tax abatement as a stmulus for economc development n McKnney. t s the polcy of the Cty of McKnney that sad consderaton wll be provded n accordance wth the procedures and crtera outlned n ths document. Accordng to Texas law, Property Redevelopment and Tax Abatement Act, V.T.C.A., Tax Code, Chapter 32, the Cty of McKnney may grant a tax abatement on the ncrement n value added to a partcular property by a specfc development proposal whch meets the economc goals and objectves of the Cty. The tax abatement shall not apply to any porton of the nventory or land value of the project. Tax abatement may be offered on mprovements to real property owned by the applcant and/ or on new personal property brought to the ste by the applcant. Projects whch are developed nvolvng leased real or personal property shall be governed under specal terms and condtons whch may be set forth n the agreement governng each specfc tax abatement. Tax abatement wll not be ordnarly consdered for projects whch would be developed wthout such ncentves unless t can be demonstrated that hgher development standards or other development and communty goals wll be acheved through the use of the abatement. Nothng heren shall mply or suggest that the Cty of McKnney s under any oblgaton to provde tax abatement to any applcant. All applcants shall be consdered on a case- by-case bass.. Crtera for Tax Abatement Any request for tax abatement shall be revewed by the Jont Commttee on Tax Abatement. n the event that a meetng of the Jont Commttee on Tax Abatement cannot be convened n the tmeframe needed to submt an economc development proposal, the Cty Manager or hs desgnee s authorzed to draft a tax abatement proposal to the company requestng an ncentve package, subject to later revew and approval by the Jont Commttee on Tax Abatement and the Cty Councl. The Jont Commttee on Tax Abatement shall be comprsed of:

12 Two elected offcals from the Cty of McKnney, as apponted by the Mayor, Two elected offcals from the McKnney ndependent School Dstrct, as apponted by the Presdent of the Board of Trustees, f the McKnney ndependent School Dstrct currently partcpates n tax abatements, One elected offcal from Colln County, as apponted by the County Judge, f Colln County currently partcpates n tax abatements, and One elected offcal from the Colln County Communty College Board of Trustees, as apponted by the Presdent of the Board of Trustees, f the Colln County Communty College currently partcpates n tax abatements. The Jont Commttee on Tax Abatement serves as a recommendng body to the taxng enttes regardng whether economc development ncentves should be offered n each ndvdual case. Ther recommendaton shall be based upon a subjectve evaluaton of job creaton, addtonal taxable value created, other ncentves provded by the Cty of McKnney and the McKnney Economc Development Corporaton, length of tme to recover value of all ncentves provded through property taxes, and communty mpact. The applcant may be requested to address the followng crtera n narratve format.. A breakdown of types and number of jobs along wth total annual payroll n suffcent detal that wages per employee can be analyzed relatve to exstng average wage trends n the communty. 2. A summary of real and personal property value added to the tax roll; drect sales tax generaton from ether purchases or sales by the applcant; communty and applcant nvestment n nfrastructure; projected annual faclty generatng budget; whether or not the applcant proposes new constructon, rehab or reuse of exstng buldngs, or some combnaton. Ths nformaton must be provded n suffcent detal to accommodate an analyss of the fscal mpact on the communty. 3. Summarze relocated employees and where from along wth projected employment from the local or regonal labor market ncludng any plans for enhancng local hred job sklls and resultant wage earnng capacty. 4. Descrbe project envronmental mpacts upon begnnng operatons to nclude ar, nose, and water. ll. Value of ncentves The subjectve crtera outlned n Secton wll be used by the Jont Commttee on Tax Abatement n determnng whether or not t s n the best nterests of the affected taxng enttes to recommend that tax abatement be offered to a partcular applcant. Specfc

13 consderatons wll nclude the degree to whch the ndvdual project furthers the goals and objectves of the communty, as well as the relatve mpact of the project. Once a determnaton has been made that a tax abatement should be offered, the value and term of the abatement wll be determned by referencng the followng table: Value of Structure, Years of Abatement Percent of Abatement Payroll & Personal Property 80, 000, % 70, 000, % 60, 000, % 50, 000, % 40, 000, % 30, 000, % 20, 000, % 0, 000, % 5, 000, % An addtonal number of years of abatement or an ncreased percentage of abatement may be granted to a project, subject to negotaton wth the Cty, f the applcant meets one ( ) or more of the followng crtera:. The applcant's average wages for full-tme employees exceeds the norm of McKnney wages wthn smlar ndustry classfcatons by twenty (20) percent; 2. The applcant' s value of mprovements to real property exceeds the norm of McKnney buldng values by twenty-fve (25) percent; 3. The estmated value of personal property ( furnture, fxtures, nventory and equpment, etc.) to be added to the tax roll exceeds by thrty-fve ( 35) percent the per square foot value of the buldng; 4. The value of the land owned by the applcant s abnormally hgher as compared to the value of the real property mprovements wth a threshold for such a land value beng ffty ( 50) percent of the value of the real property mprovements thereon; 5. The applcant s an exstng busness n the Cty of McKnney whch s expandng ts operatons; for these expansons, the Jont Commttee on Tax Abatement may also choose to consder an abatement based on threshold values of structure, payroll & personal property that are ffty (50) percent of the values lsted n the chart above; 6. The applcant presents a plan consstent wth that establshed by the Equal Employment Opportunty Commsson for the hrng of local dsadvantaged and underemployed persons n McKnney; and/ or

14 7. The applcant meets certan unque crcumstances as specfed n the abatement agreement. 8. The applcant s located n or wll locate n a state-desgnated enterprse zone wthn the Cty of McKnney and s desgnated by the State of Texas as an offcal enterprse zone project. Such applcants wll be elgble for an addtonal fve ( 5) percentage ponts of abatement over and above the abatement offered n the Cty' s basc polcy outlned above. 9. The proposed project unquely and sgnfcantly contrbutes to economc development goals of the Cty of McKnney, and s expected to attract other sgnfcant economc development projects to the Cty. On a case- by-case bass, the Cty Councl and the Jont Commttee may consder offerng an alternate tax abatement percentage where a project sgnfcantly mproves the tax base or supports or attracts other commercal/ ndustral projects. Any tax abatement granted a project shall become effectve on January of the year followng the ssuance of a Certfcate of Occupancy ( CO) unless otherwse specfed n the tax abatement agreement. Any person, organzaton or corporaton desrng that McKnney consder provdng tax abatement to encourage locaton or expanson of operatons wthn the cty lmts of McKnney shall be requred to comply wth the followng procedural gudelnes. Nothng wthn these gudelnes shall mply or suggest that McKnney s under any oblgaton to provde tax abatement n any amount or value to any applcant. Prelmnary Applcaton Steps A. Applcant shall complete "Applcaton for Tax Abatement" form. B. Applcant shall submt a cover letter descrbng the project, ts expected benefts to the communty, other mpacts on the communty, any ncentves requested or approved by the McKnney Economc Development Corporaton, and any addtonal nformaton pertnent to the project. C. Applcant shall prepare a plat showng the precse locaton of the property, and all roadways wthn 500 feet of the ste. D. f the property s descrbed by metes and bounds, a complete legal descrpton shall be provded. E. Applcant shall complete all forms and nformaton detaled n tems A through D above and submt them to the Assstant Cty Manager, Cty of McKnney, Post Offce Box 57, McKnney, Texas

15 Applcaton Revew Steps F. All nformaton n the applcaton package detaled above wll be revewed for completeness and accuracy. Addtonal nformaton may be requested as needed. G. The applcaton wll be dstrbuted to the approprate Cty departments for nternal revew and comments. Addtonal nformaton may be requested as needed. H. Copes of the complete applcaton package and staff comments wll be provded to the Jont Commttee on Tax Abatement. Consderaton of the Applcaton The Jont Commttee on Tax Abatement wll consder the applcaton at a regular or called meetng( s). Addtonal nformaton may be requested as needed. J. The recommendaton of the Jont Commttee on Tax Abatement wll be forwarded, wth all relevant materals, to the chef admnstratve offcer of each taxng entty. K. The Cty Councl of McKnney may consder a resoluton callng for a publc hearng to consder establshment of a renvestment zone. L. The Cty Councl of McKnney may hold the publc hearng and determne whether the project s " feasble and practcal and would be of beneft to the land to be ncluded n the zone and to the muncpalty." M. The Cty Councl of McKnney may consder adopton of an ordnance desgnatng the area descrbed n the legal descrpton of the proposed project as a commercal/ ndustral renvestment zone. N. The Cty Councl of McKnney may consder adopton of a resoluton approvng the terms and condtons of a contract between the Cty and the applcant governng the provsons of the tax abatement. 0. The governng bodes of the McKnney ndependent School Dstrct, Colln County and Colln County Communty College may consder ratfcaton of and partcpaton n the tax abatement agreement between the Cty of McKnney and the applcant.

16 Exhbt B Legal Descrpton and or Depcton of Real Property

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18 Exhbt.C Depcton of mprovements to the Real Properly

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23 Exhbt D. Applcaton for Property Tax Exempton Texas State Comptroller's.Offce- Form :

24 Property Applcaton for Property Tax Abatement Exempton Tax Form 50-6 Apprasal Dstrct's Name Phone( area code end number) Address, Cty, Slate, ZP Code GENERAL NSTRUCTONS: Ths applcaton s for use n clamng property lax exemptons pursuant to Tax Code. 28. You must furnsh all nformaton and documentaton requred by the applcaton. APPLCATON DEADLNES: You must fle the completed applcaton wth all requred documentaton between January and no later than Aprl 30 of the year for whch you are requestng an exempton. ANNUAL APPLCATON REQURED: You must apply for ths exempton each year you clam enttlement to the exempton. OTHER MPORTANT NFORMATON Pursuant to Tax Code. 45, after consderng ths applcaton and all relevant nformaton, the chef appraser may request addtonal nformaton from you. You must provde the addtonal nformaton wthn 30 days of the request or the applcaton s dened. For good cause shown, the chef appraser may extend the deadlne for furnshng the addtonal nformaton by wrtten order for a sngle perod not to exceed 5 days. STEP ; State the Year for Whch You are Seekng an Exempton Stab the year for whleh you are seekng an exempton STEP 2: Provde Name and Malng Address of Property Owner and dentty of Person Preparng Applcaton Name of Property Owner Maltng Address Cey. State, ZP Code Phone fame code end number) Property Owner s a( n)( check one): ndvdual Partnershp Corporaton l J Other( specfy): Name of Person Preparng ths Applcaton Ttle Drver's lcense, Personal. D. Certlcale, f ths applcaton s for an exempton from ad valorem taxaton of property owned by a chartable organzaton wth a federal tax dentfcaton number, that number may be provded here n leu of a drver's lcense number, personal dentfcaton certfcate number, or socal securty number: or Socal Securty Number Unless the applcant s a chartable organzaton wth a federal tax dentfcaton number, the applcant's drver's lcense number, personal dentfcaton certfcate number, or sodat securty account number s requred. Pursuant to Tax Code Secton. 45(u), a drver' s lcense number, personal dentfcaton certfcate number, or socal securty account number provded n an applcaton for an exempton tled wth a chef appraser s confdental and not open to publc nspecton. The nformallon may not be dsclosed to anyone other than an employee o the apprasal offce who apprases property, except as authorzed by Tax Code Secton.48( b). f the applcant s a chartable organzaton wth a federal tax dentfcaton number, the applcant may provde the organzaton's federal tax dentfcaton number n leu of a drver's lcense number, personal dentfcaton certfcate number, or socal securty account number. STEP 3; Descrbe the Property for Whch You are Seekng an Exempton f you appled last year and nothng has changed;andlor you' re agreements) snare not modfed. skp to the renewal secton- Street Address, Cty, State, and ZP code Legal Descrpton Of known) Appont Dletrbt A000unt Number( d known) The Property Tax Assstance Dvson at the Texas Comptroller of Publc Accounts provdes property tax nformaton and resources for taxpayers, local taxng enttes, apprasal dstrcts and apprasal revew boards. For rnore nformaton, vst our webate: ustaxnfolproptax /

25 o > s+:: t t. For m506 Applcaton for Property Tax Abatement Exempton STEP 4: Lst the Taxng Unts that have Agreed to Abate your Taxes and Attach Copes of the Abatement Agreement for Each Unt FOR EACH TAXNG UNT DENTFED, ATTACH COPES OF ABATEMENT AGREEMENTS. STEP 5: Answer these Questons About the Abatements) Are the terms and duraton of each tattng unt's agreement dfferent or dentcal? Dfferent dentcal f dfferent, please copy ths form for each taxng unt and complete Step 5 for each unt. n the area where you lsted the taxng unts, please crcle the taxng unt that you are summarzng. f dentcal, please descrbe the nature of the abatement agreements for ths year by completng the followng: jlump sum exempton of$ Percentage exempton of Other( Attach a statement descrbng the method of calculatng abatement. Gve dollar value to be exempted ths year) Does the agreement abate taxes on personal property? Yes No Are you n complance wth the agreement?! Yes n No f" No, attach a statement explanng the reason for non- complance. STEP 6; Read, Sgn, and Datta, -... t xc' g -... ' '.. t': -,, r< W By sgnng ths applcaton, you certfy that the nformaton provded n ths applcaton s true and correct to the best of your knowledge and belef. sgn here+ Authorzed Sgnature Ttle Prnted Name E. 4, l4fstln0 046Ptl 000. ar r r certfy that the nformaton gven n the applcaton fled for s stll true and correct to the best of my knowledge and belef. sgn here Authorzed Sgnature Ttle Prnted Name f you make a false statement on ths applcaton, you could be found gulty of a Class A msdemeanor or a state call felony under Secton 37,0., Penal Code. For more nf,urmatcn, vst our hebste: ustaxnfo/ proptax Page /

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